In Polish: Ubezpieczenie niskiego wkładu własnego
This is the word you will see in bank documents.
Definition
Low down payment insurance (ubezpieczenie niskiego wkładu własnego, UNWW) is a policy the bank requires when the down payment is below 20% of the property value. It covers the part of the loan above 80% of the value and protects the bank, not the borrower. Instead of a separate premium, many banks raise the margin until the balance falls to 80% of the value.
What it means for you
This insurance lets you buy a flat with a 10% down payment, but you pay a premium or a higher instalment for several years. The cost ends when the balance falls to 80% of the property value, so overpayments shorten this period. You remain liable for the whole debt, and the insurer may claim back from you what it paid to the bank.
Full entry in Polish, with a worked example and sources
Frequently asked questions
How much does low down payment insurance cost?
It depends on the bank. With a one-off premium it is usually a few percent of the missing down payment for 3–5 years, e.g. 3% of PLN 60,000 is PLN 1,800. With a higher margin the cost is in the instalment.
When does low down payment insurance end?
When the loan balance falls to 80% of the property value. Without overpayments, on a 30-year loan this usually takes 7–8 years.
Does this insurance protect the borrower?
No. It protects the bank against a loss if selling the property does not cover the debt. The insurer may then claim the money back from the borrower.
Related terms
Definitions are simplified and reflect Polish law and bank practice as of October 2026. Where every word matters, the Act and your loan agreement decide. Figures in examples are indicative and are not a bank offer. The Polish version of each entry has worked examples and sources.
Other terms in “Loan costs and insurance”